Regulatory Alerts1996-07-03
Notice No. 11/96 of July 3, 1996
The National Bank of Angola establishes a unified exchange rate regime that mandates regular market-based adjustments and designates the primary market selling rate as the standard for all secondary market operations. The regulation sets permissible buying and selling rate boundaries at plus or minus three percent, prohibits commercial banks and exchange houses from deviating from these rates, and fixes the Central Bank's buying rate at one percent below the primary selling rate. All conflicting prior directives, specifically Instruction No. 4/94, are revoked and the notice takes effect immediately upon publication.
NOTICE NO. 11/96
of July 3, 1996
Within the framework of the new guidelines approved by the Government, it is necessary to adjust economic policy, including the regular adjustment of exchange rates applied by Banking Institutions and Exchange Houses;
Establishing that Article 42, paragraphs a) and e), of the Organic Law of the National Bank of Angola, are respectively competent to define the principles governing foreign currency operations and to establish and publish exchange rates;
In exercise of the power conferred upon me by Law;
I DETERMINE:
A single exchange rate regime is established, based on the determination of the exchange rate by the National Bank of Angola.
Article 2 1- The National Bank of Angola shall adjust the exchange rate in accordance with actual market conditions. 2- Whenever deemed necessary, the National Bank of Angola shall intervene in the exchange market to ensure its stabilization.
Article 3 1- The exchange rate defined in Article 1 shall be the selling rate of the primary market and shall serve as the indicative rate for all operations to be carried out in the secondary market. 2- The selling exchange rate of the secondary market shall be within a maximum limit of three percent (+3%), while the buying rate shall reach a maximum limit of minus three percent (-3%). 3- Commercial Banks and Exchange Houses are prohibited from applying exchange rates different from those determined in the preceding paragraph. 4- The exchange rate shall remain in force until the National Bank of Angola publishes a new exchange rate.
Article 4 The exchange rate defined in Article 1 shall govern the purchase and sale of foreign currency by the National Bank of Angola, as well as all operations involving goods, invisible items, and capital.
Article 5 The buying exchange rate by the Central Bank shall be one percent (1%) lower than the selling exchange rate of the primary market.
Article 6 The general regime for mandatory sale to the National Bank of Angola of foreign currency amounts exceeding the active exchange position limit assigned to each Financial Institution and each Exchange House is maintained.
Article 7 All provisions contrary to the provisions of this Notice are revoked, notably Instruction No. 4/94 dated April 22.
Article 8 This Notice enters into force on the date of its publication.
PUBLISHED: Luanda, July 3, 1996 SEBASTIÃO BASTOS LAVRADOR